Feyenoord and the Stadion Feijenoord group deliver ‘Business Case 2.0’.
Updated: Feb 26, 2019
Feyenoord and the Stadion Feijenoord group yesterday delivered ‘Business Case 2.0’ to Rotterdam city council. The stakeholders hope the new sports business case will address the local authority's concerns over delays and rapidly increasing construction costs for the 63,000-seat project.
The stadium is planned to be the centrepiece of the wider €1.5bn regeneration of the southern Rotterdam-Zuid sector of the city. ‘Feyenoord City’ would include residential apartments, commercial real estate and additional sports facilities.
Business Case 2.0 outlines solutions to the local authority's concerns that include a redesigned retractable roof, and simplified construction of the stadium itself. This should mean that less steel is required. Annual stadium revenues have decreased by €13.1m in the revised business case. With the number of seats decreased from 6,250 to 5,386 and 40,000 season tickets available to fans.
Redstone CIO Mishu Heatman said "This sound very sensible and appropriate move from the Feyenoord team. As our "Alive" projects demonstrate sports assets can play a central role role in regeneration and redevelopment. The way that sports investments can anchor and bind communities is hard to replicate. It would be a mistake for Rotterdam to ignore that."
In the original plan, Feyenoord was set to receive €17.5m per year guaranteed and €7.5m on a variable basis. However, the club was seeking the €25m in full, claiming that it needs the revenue to continue to keep pace with rivals Ajax and PSV Eindhoven. This has been agreed to.
Feyenoord and Stadion Feijenoord said an estimate for total stadium investment is a shade under €400m. A consortium of banks will provide €223.8 million for construction costs. Institutional investors will account for €100m. The municipality of Rotterdam is set to offer €40m, Stadion Feijenoord €20m and various investors and foundations €30m with €30m to be raised by investors associated with the club.
Feyenoord and Stadion Feijenoord are targetting to break ground mid-2020 for an opening in the summer of 2023.
Redstone is an investor in football stadia. Redstone is a sports investor.